I also think there is a big difference between collectors and investors. As a collector I will buy a coin I like as long as I can afford it. Investors are looking for coins that they can make either short or long term money on.As a collecter I hope the value of my collection grows but thats not my main reason to buy a coin.Lately I have noticed a lot of the quick buck investors. I think when any market gets hot you will get them.They are the guys who doctor,fake,or overgrade to make a quick buck and then their gone. As the hobby cools off you will then have more of the collector and long term investor types. This is the core group that keeps the hobby going.
I completely agree with TDN. Think about it.... If a BILLIONAIRE is building a collection worth say, $10 million, (to keep things simple), that is only ONE PERCENT of his/her WORTH.. No different in terms of percentages as a MILLIONAIRE buying a $10,000 coin. DROP in the bucket for both. Could have bought the COMPLETE OLIVER JUNG collection for under 6 million. Like taking a cigar puff for a billionaire.
The economy is far from horrid. Continued record low interest rates and inflation is an easier life for most Americans. Do you really think your life is HARD these days??? I have a friend that flipped his home in Manhattan Beach, CA, having placed just about the whole thing on an interest only payment-mortgage, was panicking and wanted to sell after 2 years, then some doctor knocked on his door and said "take it off the market". Made $850,000 in just two years.
There is a ton of wealth in the U.S., and dealers buying from each other to build the pyramid is just not true. They are buying if they know they have a buyer. Whether the client is a dealer or a collector (for the dealer), my bet it is a collector most of the time. Trust me, collectors or even speculators buying 6 figure coins, are not nervous one bit about holding the bag....
If a coin goes from $4000 in one year, to $7000 the next, then someone wanted it for $7,000!!! So be it. TDN talked about the 1870-S at $1.5 million ( I bet he paid that. He wanted to say it was him, but he let us figure it out... !!!). He owns it. But to him, it was worth paying the $1.5 to get it.
Someone else someday will really want that coin. For more than $1.5 million. DEALERS are NOT bidding high against each other for coins to resell. Dealers bid up to a certain price level, give up and shake their head, and then it is COLLECTORS bidding against each other, until the one who wanted it the most, wins...........
So GOLDSAINT, I think your theory is not even close.
I'm also a CPA, and I agree re the wealth transfer & the boomers in general being far less consservative than the previous generation. Sunnywood's and others comments re not being many attractive investment alternatives I believe is a big factor here. Due to current pricing of the coins I like, I am not buying anything right now. When other investments become more attractive, I think some of the money that has recently gotten into coins will go elsewhere.
"Vou invadir o Nordeste, "Seu cabra da peste, "Sou Mangueira......."
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~I'm ready, I'm ready~
The economy is far from horrid. Continued record low interest rates and inflation is an easier life for most Americans. Do you really think your life is HARD these days??? I have a friend that flipped his home in Manhattan Beach, CA, having placed just about the whole thing on an interest only payment-mortgage, was panicking and wanted to sell after 2 years, then some doctor knocked on his door and said "take it off the market". Made $850,000 in just two years.
There is a ton of wealth in the U.S., and dealers buying from each other to build the pyramid is just not true. They are buying if they know they have a buyer. Whether the client is a dealer or a collector (for the dealer), my bet it is a collector most of the time. Trust me, collectors or even speculators buying 6 figure coins, are not nervous one bit about holding the bag....
If a coin goes from $4000 in one year, to $7000 the next, then someone wanted it for $7,000!!! So be it. TDN talked about the 1870-S at $1.5 million ( I bet he paid that. He wanted to say it was him, but he let us figure it out... !!!). He owns it. But to him, it was worth paying the $1.5 to get it.
Someone else someday will really want that coin. For more than $1.5 million. DEALERS are NOT bidding high against each other for coins to resell. Dealers bid up to a certain price level, give up and shake their head, and then it is COLLECTORS bidding against each other, until the one who wanted it the most, wins...........
So GOLDSAINT, I think your theory is not even close.
SHORT Travelzoo. TZOO.
"Seu cabra da peste,
"Sou Mangueira......."